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Largest Logistics Center in Saudi Ports Starts Operating

Saudi Arabia moves forward in implementing transformation strategy in the logistics and port service industry (Asharq Al-Awsat)
Saudi Arabia moves forward in implementing transformation strategy in the logistics and port service industry (Asharq Al-Awsat)
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Largest Logistics Center in Saudi Ports Starts Operating

Saudi Arabia moves forward in implementing transformation strategy in the logistics and port service industry (Asharq Al-Awsat)
Saudi Arabia moves forward in implementing transformation strategy in the logistics and port service industry (Asharq Al-Awsat)

Saudi Binzagr Company announced Tuesday that the Industrial Valley in King Abdullah Economic City (KAEC) started the trial phase for the largest integrated logistics center in the Kingdom worth more than one billion riyals ($266,600).

Saudi Arabia has been working to expand its ports and establish logistics centers to facilitate import and export.

The center is one of the largest in the region, with an area of 97,000 square meters and a capacity of more than 110,000 pallets for storing medical and food products.

It includes 50-meter high shelves that operate automatically with the latest technologies for storing and rearranging goods, in addition to 56 gates to receive all types of trucks, and parking lots for 180 trucks at the same time to facilitate loading and unloading.

A strategic partnership has been concluded for storing and distributing medicines with the National Unified Procurement Company for Medical Supplies (NUPCO) and for storing Binzagr Company's food products as well as those for international companies in KAEC Industrial Valley.

Binzagr CEO Ahmed Binzagr announced that the center’s construction was in line with the latest international standards.

“It includes a mechanism to facilitate storage, distribution, transportation and value-added services.”

Binzagr also spoke of an area of more than 8,000 square meters for all customers to provide consumer products for the Saudi market.

KAEC CEO Ahmed bin Ibrahim Linjawy said Binzagr selected the Industrial Valley as the headquarters of its logistic services center because it is one of the largest logistics platforms in the Kingdom and a major advanced connection hub in international trade between the east and the west.

Linjawy pointed out that KAEC and its strategic sectors have become part of the Kingdom’s ambitious Vision 2030 by supporting the industrial sector and attracting foreign investments.

CEO of TAD Logistics Khalid al-Bawardi told Asharq Al-Awsat that the expansion of ports, the establishment of logistical centers and the simplification of import and export procedures are necessary to achieve Vision 2030’s objective to make the Kingdom a global logistics hub and help it advance in the global index of logistics services from 48th in the world to 25th, and become the first regionally.

This step will attract local and global investments, enable the Kingdom to create jobs and increase the contribution of the logistics sector to the GDP, Bawardi explained.

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IMF Chief Sees Steady World Growth in 2025, Continuing Disinflation

People visit the lantern festival at the Beijing's Wenyuhe Park in Beijing on January 4, 2025, to welcome the upcoming Chinese New Year on January 29, marking the beginning of the Year of the Snake. (AFP)
People visit the lantern festival at the Beijing's Wenyuhe Park in Beijing on January 4, 2025, to welcome the upcoming Chinese New Year on January 29, marking the beginning of the Year of the Snake. (AFP)
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IMF Chief Sees Steady World Growth in 2025, Continuing Disinflation

People visit the lantern festival at the Beijing's Wenyuhe Park in Beijing on January 4, 2025, to welcome the upcoming Chinese New Year on January 29, marking the beginning of the Year of the Snake. (AFP)
People visit the lantern festival at the Beijing's Wenyuhe Park in Beijing on January 4, 2025, to welcome the upcoming Chinese New Year on January 29, marking the beginning of the Year of the Snake. (AFP)

The International Monetary Fund will forecast steady global growth and continuing disinflation when it releases an updated World Economic Outlook on Jan. 17, IMF Managing Director Kristalina Georgieva told reporters on Friday.

Georgieva said the US economy was doing "quite a bit better" than expected, although there was high uncertainty around the trade policies of the administration of President-elect Donald Trump that was adding to headwinds facing the global economy and driving long-term interest rates higher.

With inflation moving closer to the US Federal Reserve's target, and data showing a stable labor market, the Fed could afford to wait for more data before undertaking further interest rate cuts, she said. Overall, interest rates were expected to stay "somewhat higher for quite some time," she said.

The IMF will release an update to its global outlook on Jan. 17, just days before Trump takes office. Georgieva's comments are the first indication this year of the IMF's evolving global outlook, but she gave no detailed projections.

In October, the IMF raised its 2024 economic growth forecasts for the US, Brazil and Britain but cut them for China, Japan and the euro zone, citing risks from potential new trade wars, armed conflicts and tight monetary policy.

At the time, it left its forecast for 2024 global growth unchanged at the 3.2% projected in July, and lowered its global forecast for 3.2% growth in 2025 by one-tenth of a percentage point, warning that global medium-term growth would fade to 3.1% in five years, well below its pre-pandemic trend.

"Not surprisingly, given the size and role of the US economy, there is keen interest globally in the policy directions of the incoming administration, in particular on tariffs, taxes, deregulation and government efficiency," Georgieva said.

"This uncertainty is particularly high around the path for trade policy going forward, adding to the headwinds facing the global economy, especially for countries and regions that are more integrated in global supply chains, medium-sized economies, (and) Asia as a region."

Georgieva said it was "very unusual" that this uncertainty was expressed in higher long-term interest rates even though short-term interest rates had gone down, a trend not seen in recent history.

The IMF saw divergent trends in different regions, with growth expected to stall somewhat in the European Union and to weaken "a little" in India, while Brazil was facing somewhat higher inflation, Georgieva said.

In China, the world's second-largest economy after the United States, the IMF was seeing deflationary pressure and ongoing challenges with domestic demand, she said.

Lower-income countries, despite reform efforts, were in a position where any new shocks would hit them "quite negatively," she said.

Georgieva said it was notable that higher interest rates needed to combat inflation had not pushed the global economy into recession, but headline inflation developments were divergent, which meant central bankers needed to carefully monitor local data.

The strong US dollar could potentially result in higher funding costs for emerging market economies and especially low-income countries, she said.

Most countries needed to cut fiscal spending after high outlays during the COVID pandemic and adopt reforms to boost growth in a durable way, she said, adding that in most cases this could be done while protecting their growth prospects.

"Countries cannot borrow their way out. They can only grow out of this problem," she said, noting that the medium-growth prospects for the world were the lowest seen in decades.